News Releases

Advantage Announces Increase in Available Credit Facilities to $300 Million

May 17, 2012

(TSX: AAV, NYSE: AAV)

CALGARY, May 17, 2012 /CNW/ - Advantage Oil & Gas Ltd. ("Advantage" or the "Corporation") announced today that its lenders have increased our credit facility
from $275 million to $300 million. This credit facility increase in
conjunction with gross proceeds from our recent $74.7 million secondary
offering of Longview Oil Corp. ("Longview") shares will provide
additional financial flexibility in support of future capital program
requirements and general corporate purposes. Pro-forma bank debt at the
end of Q1 2012 is approximately $118 million resulting in an undrawn
credit facility of $182 million (after taking into consideration the
increased credit facility and the net proceeds from the sale of
Longview shares which is scheduled to close May 22, 2012). Advantage
will continue to retain ownership of 21,150,010 Longview shares which
has a value of $181 million based on the closing price on May 17, 2012.

Advantage's credit facilities of $300 million are comprised of a $20
million extendible revolving operating loan facility and a $280 million
extendible revolving loan facility from a syndicate of financial
institutions (the "Credit Facilities"). The amounts available to Advantage from time to time under the
Credit Facilities are based upon a borrowing base determination that is
established primarily from the value of the company's hydrocarbon
reserves. For additional detail in regard to the credit facilities,
please refer to the credit facility documents which will be filed on
SEDAR.

Advisory
The information in this press release contains certain forward-looking
statements, including within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements relate to
future events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "forecast", "seek",
"anticipate", "plan", "continue", "estimate", "demonstrate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe", "would" and similar
expressions and include statements relating to, among other things,
expected benefits to the Corporation from the Credit Facilities,
including financial flexibility to support future capital program
requirements and general corporate purposes; and the terms of the
Credit Facilities, including amounts available to Advantage under the
Credit Facilities, the revolving period for the Credit Facilities and
financial covenants. Advantage's actual decisions, activities, results,
performance or achievement could differ materially from those expressed
in, or implied by, such forward-looking statements. These statements
involve substantial known and unknown risks and uncertainties, certain
of which are beyond Advantage's control, including, but not limited to:
credit risk, including ability to meet financial covenants under the
Credit Facilities; failure to achieve the anticipated benefits from the
Credit Facilities; the impact of general economic conditions; actions
by governmental or regulatory authorities; changes in commodity prices,
currency exchange rates, interest rates capital expenditures, reserves
or reserves estimates and debt service requirements; the occurrence of
unexpected events and liabilities from the exploration for, and the
operation and development of, oil and gas properties; changes or
fluctuations in production levels; stock market volatility and
volatility in market prices for oil and natural gas; uncertainties
associated with estimating oil and natural gas reserves; competition
for, among other things, capital, acquisitions of reserves, undeveloped
lands and skilled personnel; obtaining required approvals of regulatory
authorities; and ability to access sufficient capital from internal and
external sources. Many of these risks and uncertainties and additional
risk factors are described in the Corporation's Annual Information Form
which is available at www.sedar.com and www.advantageog.com. Readers
are also referred to risk factors described in other documents
Advantage files with Canadian securities authorities. With respect to
forward-looking statements contained in this press release, Advantage
has made assumptions regarding, among other things: conditions in
general economic and financial markets; commodity prices; effects of
regulation by governmental agencies; future exchange rates; future
operating costs; availability of skilled labor; availability of
drilling and related equipment; timing and amount of capital
expenditures; and the impact of increasing competition. These
forward-looking statements are made as of the date of this press
release and Advantage disclaims any intent or obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.